By Stewart Lewis
(June 9 – 17:30 ET) – Stock markets in the U.S. initially strengthened today following the release of the producer-price report for May. The report offered some encouraging news that the American economy is slowing in response to aggressive interest rate increase by the U.S. Federal Reserve. But then, markets turned lower as investors resumed a wait-and-see attitude. Many analysts expect a decision from the Fed later this month.
The Dow Jones industrial average closed down 53.79 points to 10614.93, ending the week down 1.7%. The NASDAQ composite index, however, added 49.75 to 3875.31, finishing the week up 1.6% as small stocks and some technology shares advanced.
In Canada, investors were not deterred by a Statistics Canada report citing a significant increase in permanent, full-time jobs and the lowest unemployment figure since the spring of 1976.
The Toronto Stock Exchange 300 composite index added 76.45, climbing to 9728.84. Advancing issues outnumbered declining issues 633 to 411. Twelve of its sub-indices were higher at the end of the day, though volume was typically low for a summer Friday — just 119 million.
The CDNX edged up just 18.31 to 3471.32. Advancers nudged out decliners 297 to 244.
Next week, the U.S. will be releasing several economic reports and Alan Greenspan is scheduled to speak. In Canada, Finance Minister Paul Martin will be tabling financial sector reform legislation, on Tuesday. Changes to provisions regarding bank ownership are expected.